Housing and Development Bank profits down 7.4% in 2020


The bank intends to launch 3 branches at an investment cost of 110.7 million pounds

Land introductions record 2.6 billion pounds … and attract 300 applicants for housing reservations

30 million pounds of the bank’s profits from the electronic registration of the New Urban Communities Authority events

The consolidated financial statements of the Housing and Development Bank showed, during 2020, its profits declined 7.37%, to record 2.06 billion pounds, compared to 2.22 billion pounds in 2019.

Interest income decreased to 6.04 billion pounds, compared to 6.62 billion pounds in 2019, which was attributed by the bank to the rapid transmission of the impact of reducing interest on assets compared to deposits and certificates that appear to have an impact after their maturity.

The bank said that the return on its deposits with the Central Bank amounted to 353 million pounds, down 70% from 2019, as a result of the bank’s intention to expand granting credit and buy treasury bills instead of linking weekly and daily deposits with the Central Bank.

While the return on his deposits with other banks decreased 30% to reach 114 million pounds, and despite the growth of his investment in treasury bills by 16.7%, to reach the balances to 19.5 billion pounds, the return on it rose only 1% to record 2.18 billion pounds.

The bank said that the volume of investment in treasury bonds and securitization bonds amounted to 9.8 billion pounds, a growth of 88%, and the return on them rose to 1.08 billion pounds compared to 691 million pounds, an increase of 57%.

The bank intends to reach its network of branches to 100 branches by launching 3 branches in 2021, at an investment cost of 110.7 million pounds.

He said that he signed a contract with the MasterCard Company, worth 2.7 million dollars, to issue MasterCard cards only for a period of 10 years, and that the value of the material support will be used to pay the cost of projects necessary to develop the card business.

Bank deposits grew by 14% to reach 47.1 billion pounds compared to 41.3 billion, supported by the growth of customer deposits 15% to reach 44.5 billion and land deposits by 5.5% to reach 2.6 billion.

He said that deposits were marketed through the Telemarketing Department for clients applying to reserve lands and residential units, and to attract them to open savings accounts in the bank and keep the value of the advances instead of leaving those funds again from the bank, and after communicating with 2,300 clients, 300 clients were attracted and opened accounts with balances of 18 million pounds.

He revealed that the valuation of his financial investment portfolio decreased 3.03%, worth 4.39 million pounds, after accounting for the coupons, even though the main stock market index fell 22.16%, to 51.5 million pounds distributed among 21 shares in 11 sectors.
He said that equity investment funds achieved capital gains of 1.8 million pounds and commissions worth 1.86 million pounds, with a total profit of 3.7 million pounds.

The fixed income governor achieved a return of 37.85 million pounds.

He revealed that the bank had launched many services and added advantages to the “money” portfolio, and that the total of the existing portfolios reached 232 thousand, including 90.5 thousand issued portfolios last year.

He mentioned that 25 automated teller machines were launched as part of the Central Bank’s initiative, in addition to accessing the bank’s teller networks to 317 machines, compared to 259 by the end of 2019.

The bank revealed that it had succeeded in renewing 94% of the bay roll contracts with companies, retaining about 63 companies out of 66 despite competition with banks, in addition to attracting 48 new companies, so that the number of clients whose salaries were transferred to the bank became 228 thousand employees at a value of 700 million pounds and the average stagnant amounts In customer accounts, it reaches 241 million pounds.

He noted that coordination is underway with the Central Bank and the Ministry of Finance to implement the project for replacing salary cards with a Meeza card.

Why decreased the operating cost of the bank?

Administrative expenses with the bank decreased by 146 million pounds as a result of a 5 million pounds wage bill decline, despite the 25% increase in salaries (first stage), in addition to the disbursement of monthly transportation expenses for all employees of the bank not affiliated with the car ownership system for workers, in addition to the payment of the 7% bonus applied by the state.

Marketing and advertising expenses in the bank decreased by 101 million pounds, as well as fees, revenues and stamps by 13 million pounds, and the cost of publications, photocopy paper and inks decreased by 15.7 million pounds.

Retail activity

The bank’s retail banking grew 95% to reach 4.87 billion pounds, supported by the growth of personal loans to 4.2 billion pounds, representing 133% of the targets.

The balances are divided into 56.17 thousand loans by the end of 2020 compared to 46,598 thousand loans in Bahaia 2019.

Last year, the bank issued 24.498 thousand loans worth 2.84 billion pounds, compared to 14.88 thousand loans worth 1.32 billion pounds during 2019.

Auto loan balances increased to 233 million pounds, a growth of 382% compared to 2019, and the bank issued 1545 loans worth 267 million pounds last year, compared to 388 loans worth 63 million pounds in 2019.

The total of existing credit cards increased to 16,000 cards, compared to 7.8,000 cards, including 9777 cards issued during 2020.

The mortgage finance portfolio for individuals recorded 810.4 million pounds for 5,469 beneficiaries.

The low-income group acquires the largest share of the funds with a value of 542.5 million pounds for the benefit of 5186 clients, followed by an average income of 149.3 million pounds for the benefit of 239 clients, and then the privileged income with financing 118.5 million pounds for 44 clients.

How much did the bank profit from the electronic reservation of the Urban Communities Authority units?

The bank obtained 17 million pounds as an electronic reservation commission for the units of the Urban Communities Authority, and achieved 13.8 million pounds in registration revenue on its website.

The article HDB’s profits down 7.4% in 2020, it was written in Al-Borsa newspaper.